US Bitcoin ETFs Surge Past $15 Billion, But Why Is BTC Price Lagging?

A red-hot trend is unfolding in the world of Bitcoin. Spot Bitcoin exchange-traded funds (ETFs) in the United States are on a record-breaking streak, attracting a staggering $15.6 billion, marking their 19 consecutive days of increased demand.

But here’s the head-scratcher: despite this frenzy of investment, Bitcoin’s price remains stubbornly below its much-anticipated $73,679 peak. What’s going on?

Dive deeper to uncover the reasons behind this disconnect and what it might mean for the future of Bitcoin.

The Bitcoin ETF Boom

Since their inception, these ETFs have captured the attention of investors, accumulating an astounding $15.6 billion in total inflows and amassing total assets worth a staggering $62.3 billion. Globally, Bitcoin ETFs now hold approximately 1.3 million BTC, accounting for a significant 5.2% of the circulating supply.

This surge in Bitcoin ETF popularity, led by industry giants like BlackRock Inc. and Fidelity Investments, signifies a significant shift in crypto’s epicenter—from Asia to the United States.

Last week, BlackRock’s $21.4 billion iShares Bitcoin Trust surpassed Grayscale Investments LLC’s $20.1 billion Bitcoin Trust, becoming the largest fund for the token worldwide. Fidelity’s $12.3 billion Wise Origin Bitcoin Fund holds the third position.

The surge in ETF inflows aligns with regulatory changes, including the SEC’s approval of spot Bitcoin ETFs earlier this year. This regulatory pivot has not only reshaped the crypto landscape but also redirected the industry’s focus toward the United States, away from its traditional stronghold in Asia.

Understanding SEC’s Crucial Role

The SEC, after allowing spot Bitcoin ETFs in January and spot Ethereum ETFs in May is now reviewing regulations for the crypto industry. Despite Chair Gary Gensler’s concerns about regulatory compliance, congressional efforts are underway to clarify crypto legislation.

Industry Voices

Ophelia Snyder, president of crypto ETF provider 21 Shares AG, shared insights on Bloomberg’s Tiger Money podcast, highlighting that digital-asset fund adoption is still in its infancy, signaling significant growth potential ahead. She aptly likened the current phase to “early innings,” suggesting that the game of crypto investment has only just begun.

When Will Bitcoin Breakthrough?

Despite the remarkable 19-day streak of record-breaking inflows into US Bitcoin ETFs, Bitcoin’s price has yet to breach the elusive $73,679 mark. However, speculators in the options market remain optimistic, anticipating a breakthrough this month. This optimism is fueled by the surging demand for ETFs and expectations of Federal Reserve interest-rate cuts.

At present, Bitcoin is trading at $71,080, reflecting a modest increase in its price over the past 24 hours. Despite this surge, trading volume remains relatively subdued at around $26.2 billion, with a market cap hovering around $1.4 trillion.